Yes this is working because your private L2 transport support a 1508 MTU, but it is out of standard. PPPoE links should be limited to 1492 MTU to follow the standard and avoid compatibility problems.
According to RFC 2516 (PPP over Ethernet) :
The Maximum-Receive-Unit (MRU) option MUST NOT be negotiated to a
larger size than 1492. Since Ethernet has a maximum payload size of
1500 octets, the PPPoE header is 6 octets and the PPP Protocol ID is
2 octets, the PPP MTU MUST NOT be greater than 1492.
As a provider if you do not limit the PPPoE MTU to 1942, then you will be assured to have a small pourcentage of clients refusing PPP connections because of out of standard feature.
To go higher the PPP-Max-Payload Tag must be used in the PADI and PADR packets. Then full compatibility is kept.
From RFC 4638 (Accommodating an MTU/MRU greater than 1492 in PPPoE) :
If a PPPoE client wants to use a higher MTU/MRU than 1492 octets,
then it MUST include an optional PPP-Max-Payload Tag in the PADI
and PADR packets.
If the PPPoE server can support a higher MTU/MRU than 1492 octets, it
MUST respond with an echo of the clients tag in the PADO and PADS
packets when the PPP-Max-Payload tag is received from the client.
Tag-name: PPP-Max-Payload
Tag-value: 0x0120
Tag-length: 2 octets
Tag-value: binary encoded value (max PPP payload in octets)
Tag-description:
This TAG indicates that the client and server are capable of
supporting a given maximum PPP payload greater than 1492 octets for
both the sending and receiving directions.
Note that this value represents the PPP payload, so it is directly
comparable with the value used in the PPP MRU negotiation.